Ferriday Insurance Agents Arrested, Issued Cease and Desist Orders, Summary
Suspensions and Fine Notices
Released: October 30, 2008
Two Ferriday area insurance agents have been arrested, issued cease
and desist orders, summary suspensions and fine notices today for
various acts which are in violation of the Louisiana insurance code.
Gerald Shane Smith, 35, was arrested today by Louisiana State Police
on three counts of Unfair Trade Practices and Producer Fraud. He
was also served with a cease and desist order, summary suspension
of his license and a $5,000 fine notice today by Department of Insurance
Fraud Section Investigators for allegedly doing business without
a license, forgery, misappropriation and misrepresentation.
Joe Richard Davis, 62, was also arrested today by Louisiana State
Police on three counts of Unfair Trade Practices and Producer Fraud.
He was served with a cease and desist order, summary suspension of
his license and a $5,000 fine notice today for allegedly accepting
business with an unlicensed person and misrepresentation.
Smith is alleged to have made applications for life insurance policies without holding
a life insurance license and to have forged Davis’ name
on the applications. He is also alleged to have misrepresented information
on an insurance application and to have converted premiums to his
own account before remitting them to the insurance company.
Davis is alleged to have knowingly allowed Smith, who does not hold
a life insurance license, to make life insurance applications with
misrepresented information and forge his name to the documents. He
is also alleged to have executed a power of attorney to Smith for
the purpose of allowing him to execute life insurance applications
without a license.
Department records show that Smith was issued a Property and Casualty license in May
2008. Davis was issued a Property and Casualty license in May 1973 and an Annuity and Health license in August 1973. All
licenses were valid until today’s action.
Commissioner Donelon urges consumers who feel uneasy about any insurance
related transaction to call the Department of Insurance Fraud Section
at 225-342-4956 or 1-800-259-5300. If callers do not want their names
used, they can request that their involvement be kept confidential.